Topic: How To Invest

The Successful Investor Hotline – Friday, April 5, 2019

Article Excerpt

SNC-LAVALIN GROUP INC., $33.92, Toronto symbol SNC, is a leading Canadian engineering and construction company that specializes in large-scale infrastructure projects such as roads, bridges, transit systems and water-treatment plants. The company has now agreed to sell most of its 16.77% stake in Highway 407, a toll highway in southern Ontario. Under the terms of the sale, SNC will sell 10.01% of 407 to OMERS (Ontario Municipal Employees Retirement System) for $3.0 billion. Depending on the highway’s future performance, SNC could receive additional payments of up to $250 million over the next 10 years. The highway’s other shareholders—Spain’s Ferrovial S.A. (which owns 43.23%) and the Canada Pension Plan Investment Board (40%)—each have a right of first refusal over SNC’s shares. If they don’t exercise those rights, the company expects to complete the sale in next two months. Afterwards, it will still own 6.76% of 407. SNC will use the proceeds to pay down $600 million of its debt, which totalled $2.3 billion (as of…

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